The document outlines the complexities of UK energy policy, focusing on the balance between energy security, affordability, and climate change. It highlights the tensions arising from rising energy prices, a shift to net energy importer status, and debates over technologies such as fracking. Additionally, it emphasizes the uncertainty in achieving long-term energy planning and the need for innovation and adaptation in low-carbon technologies.

1. Click to add title
Synergies and tensions
in UK energy policy
Jim Watson, Research Director
UK Energy Research Centre
Energy Systems Conference, London, 24-25 June 2014

2. Energy policy and energy systems
Large scale technology, such as electric light and
power systems, incorporate not only technical and
physical things such as generators, transformers and
high-voltage transmission lines, but also utility
companies, electrical manufacturers and reinforcing
institutions such as regulatory agencies and laws
Thomas Hughes, American Genesis (1989)

3. Balancing energy policy goals?
Our energy security is best served
by minimising our exposure to the
volatile global fossil fuel markets,
enhancing our energy efficiency
and maximising home-grown low
carbon energy, as well as cleaner
indigenous reserves, such as
natural gas, to help ease the low
carbon transition
Ed Davey, March 2014

4. Balancing energy policy goals?
Security of supply, affordability, and
playing our part in combating
climate change. And that for me is
the order
Michael Fallon, 2nd Dec 2013

5. Reducing GHG emissions:
good progress, but will it continue?
0
100
200
300
400
500
600
700
800
900
1990 1995 2000 2005 2010
Emissions:mtCO2(equiv)
CO2 emissions Other GHGs Total GHGs
Source: Department of Energy and Climate Change
CO2 emissions
are down 19%
since 1990

6. 0
100
200
300
400
2000 2002 2004 2006 2008 2010 2012
Index(2000=100)
Gas Electricity
Gas prices have
trebled since 2000
Electricity prices have
doubled since 2000
Affordability:
Domestic gas & electricity prices
But energy has become more
expensive:
rising prices and bills

7. Click to add titlePrice rises and fuel poverty
Source: Department of Energy and Climate Change

8. Energy security is high on the agenda
for many reasons:
 High energy prices since mid 2000s
 UK’s shift back to net energy importer
 Geopolitics and conflicts
 Impacts of extreme weather
 Ageing and/or inadequate
infrastructure
Security debates often focus on
international risks, but many risks are
closer to home
A secure energy system:
but can this be maintained?

9. -200.0
-100.0
0.0
100.0
200.0
300.0
400.0
500.0
600.0
1980 1985 1990 1995 2000 2005 2010
TWh
Exports Pipeline Imports LNG Imports Net Imports
Source: DECC
Maintaining energy security
From gas exporter to importer / trader
A secure energy system?
from gas exporter to importer

10. Tensions between policy goals

11. Click to add titleTensions between policy goals

12. Tensions between policy goals
Fracking has become a national
debate in Britain – and it’s one
that I’m determined to win. If we
don’t back this technology, we will
miss a massive opportunity to
help families with their bills and
make our country more
competitive. Without it, we could
lose ground in the tough global
race
David Cameron, August 2013

13. 3. Innovation systems & developmentMeeting energy policy goals:
a return to energy planning?

14. The electricity market is disappearing:
government making investment decisions
Even if this is temporary, need to be aware
of the risks and tensions, e.g.
 We don’t know which low carbon
technologies will be most cost effective
 Risks of stifling radical change: demand
side response; decentralised generation;
a more plural energy market
 Heat and transport decarbonisation are
even more uncertain: need for
experimentation, innovation & learning
3. Innovation systems & developmentMeeting energy policy goals:
a return to energy planning?

15. Click to add title
Thanks
http://www.ukerc.ac.uk
@UKERCHQ @watsonjim2